The first mortgage default rate dropped from 1.58% in January to 1.48% in February, according to a recent report by S&P Dow Jones and credit bureau Experian.

The second mortgage default rate, on the other hand, increased marginally from 0.69% in January to .71% in February.

"These trends are consistent with other economic news – improvements in employment and overall economic activity and continuing gains in housing. Additionally, foreclosure activity continues to decline even though it remains at elevated levels compared to the period before the financial crisis," said David Blitzer, managing director and chairman of the index committee for S&P Dow Jones.

Three of the five cities covered by the index reported decreases in their February default rates. New York dropped 12 basis points, Los Angeles by 18 basis points and Miami by 24 basis points.

Chicago and Dallas both rose by one-basis point and seven basis points, respectively.

Miami reported the highest default rate at 3.21%, while Dallas saw the lowest at 1.26%. All five cities are still lower than their respective default rates from February 2012.